When you look at FLUOR CORP (NYSE:FLR), it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

FLUOR CORP (NYSE:FLR) was identified as a decent value stock by our stock screener. FLR scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Looking at the Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. FLR boasts a 7 out of 10:

• Based on the Price/Earnings ratio, FLR is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of FLR to the average of the S&P500 Index (28.78), we can say FLR is valued slightly cheaper.
• 84.00% of the companies in the same industry are more expensive than FLR, based on the Price/Forward Earnings ratio.
• FLR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.32.
• Based on the Enterprise Value to EBITDA ratio, FLR is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
• 90.00% of the companies in the same industry are more expensive than FLR, based on the Price/Free Cash Flow ratio.
• The decent profitability rating of FLR may justify a higher PE ratio.
• FLR's earnings are expected to grow with 13.52% in the coming years. This may justify a more expensive valuation.

Assessing Profitability for FLR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. FLR was assigned a score of 6 for profitability:

• With an excellent Return On Assets value of 23.46%, FLR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 54.32%, FLR belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
• The last Return On Invested Capital (4.83%) for FLR is above the 3 year average (4.16%), which is a sign of increasing profitability.
• FLR has a better Profit Margin (13.15%) than 94.00% of its industry peers.
• In the last couple of years the Operating Margin of FLR has grown nicely.
• In the last couple of years the Gross Margin of FLR has grown nicely.

Assessing Health for FLR

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. FLR has earned a 7 out of 10:

• An Altman-Z score of 3.36 indicates that FLR is not in any danger for bankruptcy at the moment.
• FLR's Altman-Z score of 3.36 is fine compared to the rest of the industry. FLR outperforms 68.00% of its industry peers.
• FLR has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
• FLR's Debt to FCF ratio of 1.66 is fine compared to the rest of the industry. FLR outperforms 76.00% of its industry peers.
• A Debt/Equity ratio of 0.28 indicates that FLR is not too dependend on debt financing.
• FLR's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. FLR outperforms 72.00% of its industry peers.
• With an excellent Current ratio value of 1.69, FLR belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
• Looking at the Quick ratio, with a value of 1.69, FLR belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.

A Closer Look at Growth for FLR

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of FLR, the assigned 4 reflects its growth potential:

• The Earnings Per Share has been growing by 27.71% on average over the past years. This is a very strong growth
• FLR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.38% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of FLR contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.